Hedge funds caught short as 21st Century Fox, Sprint deals collapse

The Australian – On a day some traders dubbed “Arbageddon”, hedge funds who bet on big corporate takeovers, known as arbitrageurs, suffered their worst rout in years after two deals fell apart and regulators indicated they may take steps to stymie others.

In a rapid-fire series of moves over the course of 24 hours, 21st Century Fox dropped its $US80 billion bid for Time Warner, and Sprint abandoned plans to acquire T-Mobile US.